Chapter 2 The History of Management MGMT 3

In the Beginning After reading the next section, you should be able to: 1.

Management Ideas and Practice Throughout History 1. 1 5000 BCE Sumerians Record keeping 4000

Why We Need Managers Today Then Now Work in families Work in factories Skilled

The Evolution of Management After reading the next four sections, you should be able

The History of Scientific Management § Studies and tests methods to identify the best,

Frederick W. Taylor © Bettmann/CORBIS / © i. Stockphoto. com/Duncan Walker Frederick Taylor is

Taylor’s Four Management Principles Develop a science for each element of a man’s work,

The Boston Consulting Group and Best Practices Beyond the Book • A recent study

Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea

Motion Studies: Frank & Lillian Gilbreth Motion Study Breaking each task into its separate

Charts: Henry Gantt 2. 3 12 Copyright © 2011 by Cengage Learning. All rights

The History of Bureaucratic Management Max Weber, 1864 -1920 Bureaucracy The exercise of control

The Aim of Bureaucracy 1. Qualification-based hiring 2. Merit-based promotion 3. Chain of command

Administrative Management: Henri Fayol 1. Division of work 8. Centralization 2. Authority and responsibility

The History of Human Relations Management Efficiency alone is not enough to produce organizational

Mary Parker Follett is known today as the mother of scientific management. Her many

Constructive Conflict and Coordination: Mary Parker Follett Domination Dealing with Conflict Compromise Integration 4.

Hawthorne Studies: Elton Mayo • Workers’ feelings and attitudes affected their work • Financial

Cooperation and Acceptance of Authority: Chester Barnard Managers can gain cooperation by: ü Securing

Cooperation and Acceptance of Authority: Chester Barnard People will be indifferent to managerial directives

Operations, Information, Systems, and Contingency Management Operations Management Information Management Systems Management Contingency Management

Operations Management Tools Quality control Forecasting techniques Capacity planning Productivity measurement and improvement Linear

Operations Management Tools Guns Origins of Operations Management Geometry Fire 5. 1 24 Copyright

Whitney, Monge, and Olds Eli Whitney, 1765 -1825 Gaspard Monge, 1746 -1818 Ransom Olds,

Information Management Milestones in information management: 1400 s 1500 -1700 1850 1860 s 1879

Systems Management 5. 3 27 Copyright © 2011 by Cengage Learning. All rights reserved

Contingency Management Contingency Approach holds that there are no universal management theories and that

Contingency Management • Management is harder than it looks • Managers need to look

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Management Ideas and Practice Throughout History 1. 1 5000 BCE Sumerians Record keeping 4000 -2000 BCE Egyptians Plan, Planning, organize, organizing, controlling. Written requests. 1800 BCE Hammurabi Controls and written documentation 600 BCE Nebuchadnezzar Wage incentives, production control 500 BCE Sun Tzu Strategy 400 BCE Xenophon Management as a separate art 400 BCE Cyrus Human relations and motion study 175 Cato Job descriptions 284 Diocletian Delegation of authority 900 Alfarabi Listed leadership traits 1100 Ghazali Listed managerial traits 1418 Barbarigo Different organizational forms/structures 1436 Venetians Numbering, standardization, interchangeability 1500 Sir Thomas More Critical of poor management and leadership 1525 Machiavelli 3 Copyright © 2011 by Cengage Learning. All rights reserved Cohesiveness, power, and leadership

Why We Need Managers Today Then Now Work in families Work in factories Skilled laborers Specialized, unskilled laborers Small, self-organized groups Large factories Unique, small batches of production Large standardized mass production 1. 2 Copyright © 2011 by Cengage Learning. All rights reserved

The Evolution of Management After reading the next four sections, you should be able to: 2. explain the history of scientific management. 3. discuss the history of bureaucratic and administrative management. 4. explain the history of human relations management. 5. discuss the history of operations, information systems, and contingency management. 5 Copyright © 2011 by Cengage Learning. All rights reserved

The History of Scientific Management § Studies and tests methods to identify the best, most efficient ways “Seat-of-the Pants” Management § No standardization of procedures § No follow-up on improvements 2 6 Copyright © 2011 by Cengage Learning. All rights reserved

Frederick W. Taylor © Bettmann/CORBIS / © i. Stockphoto. com/Duncan Walker Frederick Taylor is known today as the father of scientific management. One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day. 2. 1 Copyright © 2011 by Cengage Learning. All rights reserved

Taylor’s Four Management Principles Develop a science for each element of a man’s work, which replaces the old rule-of-thumb method. Scientifically select and then train, teach, and develop the workman. Cooperate with the men to insure all work is done in accordance with the principles of the science. 2. 1 There is almost equal division of the work and the responsibility between management and workmen. 8 Copyright © 2011 by Cengage Learning. All rights reserved

The Boston Consulting Group and Best Practices Beyond the Book • A recent study by the Boston Consulting Group seems to reaffirm Taylor’s theories about best practices. • Teams in the BCG study found that when they limited the hours that employees could work, productivity increase. • Teams had to communicate better, collaborate better, plan ahead, and streamline work. • Limiting time on the clock can help workers evaluate their processes and find ways to work more efficiently. Source: S. Baker, “Timken Plots a Rust Belt Resurgence”, Business Week, 26 October 2009. 58. 9 Copyright © 2011 by Cengage Learning. All rights reserved

Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter. 2. 2 Copyright © 2011 by Cengage Learning. All rights reserved © i. Stockphoto. com/Marcela Barsse Frank & Lillian Gilbreth

Motion Studies: Frank & Lillian Gilbreth Motion Study Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive. Time Study Timing how long it takes good workers to complete each part of their jobs. 2. 2 11 Copyright © 2011 by Cengage Learning. All rights reserved

The History of Bureaucratic Management Max Weber, 1864 -1920 Bureaucracy The exercise of control on the basis of knowledge, expertise, or experience. 3. 1 13 Copyright © 2011 by Cengage Learning. All rights reserved

The Aim of Bureaucracy 1. Qualification-based hiring 2. Merit-based promotion 3. Chain of command 4. Division of labor 5. Impartial application of rules and procedures 6. Recorded in writing 7. Managers separate from owners 3. 1 14 Copyright © 2011 by Cengage Learning. All rights reserved

Administrative Management: Henri Fayol 1. Division of work 8. Centralization 2. Authority and responsibility 9. Scalar chain 3. Discipline 10. Order 4. Unity of command 11. Equity 5. Unity of direction 12. Stability of tenure of personnel 6. Subordination of individual interests 7. Remuneration 13. Initiative 14. Esprit de corps 3. 2 15 Copyright © 2011 by Cengage Learning. All rights reserved

The History of Human Relations Management Efficiency alone is not enough to produce organizational success. Success also depends on treating workers well. 4 16 Copyright © 2011 by Cengage Learning. All rights reserved

Mary Parker Follett is known today as the mother of scientific management. Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing. 4. 1 Copyright © 2011 by Cengage Learning. All rights reserved

Hawthorne Studies: Elton Mayo • Workers’ feelings and attitudes affected their work • Financial incentives weren’t the most important motivator for workers • Group norms and behavior play a critical role in behavior at work 4. 2 19 Copyright © 2011 by Cengage Learning. All rights reserved

Cooperation and Acceptance of Authority: Chester Barnard Managers can gain cooperation by: ü Securing essential services from individuals ü Unifying people by clearly formulating an organization’s purpose and objectives ü Providing a system of effective communication 4. 3 20 Copyright © 2011 by Cengage Learning. All rights reserved

Cooperation and Acceptance of Authority: Chester Barnard People will be indifferent to managerial directives if they… ü are understood ü are consistent with the purpose of the organization ü are compatible with the people’s personal interests ü can actually be carried out by those people 4. 3 21 Copyright © 2011 by Cengage Learning. All rights reserved

Operations, Information, Systems, and Contingency Management Operations Management Information Management Systems Management Contingency Management 5 22 Copyright © 2011 by Cengage Learning. All rights reserved

Operations Management Tools Quality control Forecasting techniques Capacity planning Productivity measurement and improvement Linear programming Scheduling systems Inventory systems Work measurement techniques Project management 5. 1 Cost-benefit analysis 23 Copyright © 2011 by Cengage Learning. All rights reserved

Information Management Milestones in information management: 1400 s 1500 -1700 1850 1860 s 1879 1880 s 1890 s 1980 s 1990 s Horses in Italy Creation of paper and the printing press Manual typewriter Vertical file cabinets and the telegraph Cash registers Telephone Time clocks Personal computer Internet 5. 2 26 Copyright © 2011 by Cengage Learning. All rights reserved

Contingency Management Contingency Approach holds that there are no universal management theories and that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place. 5. 4 28 Copyright © 2011 by Cengage Learning. All rights reserved

Contingency Management • Management is harder than it looks • Managers need to look for key contingencies that differentiate today’s situation from yesterday’s situation • Managers need to spend more time analyzing problems before taking action • Pay attention to qualifying phrases, such as “usually” 5. 4 29 Copyright © 2011 by Cengage Learning. All rights reserved